💨 Abstract

The Nuvama report predicts a challenging outlook for India's economy in FY26 due to subdued demand in key sectors. Four factors - wealth effect, incomes, leverage, and fiscal transfers - are identified as key drivers of consumption cycles. In FY25, all these drivers have shown signs of weakness, with household income growth slowing and consumption loans decreasing. Rural consumption may increase, while urban consumption may slow further.

Courtesy: theprint.in